The importance of cities meeting global climate targets is undisputed. Since the COP21 Paris agreement, many more cities have joined early leaders like Copenhagen and Stockholm in pledging to become carbon neutral. Boston and London, for example, have both recently announced the goal of becoming zero carbon cities by 2050.
To achieve such ambitious goals, cities will need to implement major changes to their energy systems by 2030. And given the speed of urban planning processes and infrastructure programs, cities and their partners need to instigate many of these projects within the next 3-5 years.
This transformation will touch every aspect of city services and infrastructure including energy generation and distribution, heating and cooling systems, building energy efficiency, transportation, water and waste management, and the efficiency of city services such as street lighting. At the same time, city operations are being transformed by digital technologies such as the Internet of Things (IoT), smart buildings, artificial intelligence, robotics, and automated vehicles.
Navigant characterizes the current transformation in the energy sector as the emergence of the Energy Cloud. The Energy Cloud scenario describes a radical transformation of energy markets as the one-way power grid gives way to a more dynamic network of stakeholders, technologies, and infrastructure. It envisions a world in which the power supply is cleaner and more distributed, where digital transformation embraces artificial intelligence, the IoT, and blockchain-enabled networks, and where widespread electrification of the transportation sector means that power supply and demand become increasingly mobile.
This transformation of the energy sector also provides the bedrock for the creation of the low carbon cities of the future. One of the most important developments for cities looking to transform their energy profile is the interlinking of the energy sector with buildings and transportation. A zero carbon city will need to address the role of fossil fuels in space heating and in transportation. Improvements in energy efficiency and the shift to renewable resources are essential steps but, more profoundly, the much closer connection between buildings and transportation and the energy grid will lay the foundation for a new Urban Energy Cloud.
The emerging Urban Energy Cloud vision is of a smart city that integrates large- and small-scale energy initiatives and solutions, citywide improvements in energy efficiency, distributed energy resources, and low carbon transportation. In the process, cities will become clusters of smart energy communities that can exploit the benefits of new energy systems.
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